Why UrbanClap pushed the pause button on laundry service

Why UrbanClap pushed the pause button on laundry service

UrbanClap Technologies Pvt Ltd, the most-funded local services marketplace in the country, has stopped offering its daily laundry services after realising the segment wasn't as easy as to operate in as initially thought.

"The laundry space is very young and does not have good-quality supply. Our customers were not having a good experience. We decided to pause it for now till we find a good supply network," co-founder Varun Khaitan told Techcircle.in.

But he clarified that the company is still offering dry cleaning and other services "because those are more evolved and have a good supply network".

The development comes barely months after the company, which offers services in 75 categories across Mumbai, Delhi NCR, Bengaluru, Chennai and Pune, sealed a large funding round and also got the backing of Tata Sons' chairman emeritus Ratan Tata. It also highlights the growing consolidation in the sector.

In November, the company mobilised $25 million (Rs 165 crore) in Series B funding led by Bessemer Venture Partners, with participation from Accel Partners and SAIF Partners. Tata, one of the most active angel investors in India, put in money the next month. In total, UrbanClap has secured about $37 million in funding since April 2015.

Besides UrbanClap, a number of companies including HouseJoy, Zimmber, LocalOye and Timesaverz have raised external funding over the past year as platforms that connect users with local services attracted investor attention.

But the segment seems to be consolidating. In early February, Housejoy acquired startup My Wash Technologies Pvt Ltd. Paytm, the online marketplace and mobile wallet operator, purchased home services provider Near.in in December, a month after Mumbai-based Crenovative Ideas Pvt Ltd, which operates home services startup Taskbob, took over Zepper Services Pvt Ltd.